WTTR Dividend
Although WTTR has a dividend of 0.07 with an ex-dividend date of May 6, you can sell covered calls on Select Energy Services, Inc. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Select Energy Services, Inc. Class A (WTTR) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 8.52 |
8.83 |
8.83 |
-0.07 |
746K |
30 |
1.1B |
WTTR Dividend-Like Income Using Covered Calls
With WTTR at 8.83, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:
| Annual Yield |
Annual Premium |
Cents/Day |
| 3% |
0.26 |
0.1 |
| 5% |
0.44 |
0.1 |
| 10% |
0.88 |
0.2 |
So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:
| 3% Yield On WTTR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
10.00 |
0.40 |
172 |
0.2 |
1.17 (13.3%) |
| Jul 18 |
10.00 |
0.30 |
81 |
0.4 |
1.17 (13.3%) |
| 5% Yield On WTTR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
10.00 |
0.40 |
172 |
0.2 |
1.17 (13.3%) |
| Jul 18 |
10.00 |
0.30 |
81 |
0.4 |
1.17 (13.3%) |
| 10% Yield On WTTR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 18 |
10.00 |
0.30 |
81 |
0.4 |
1.17 (13.3%) |
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